Most Popular
1. THE INFLATION MONSTER is Forecasting RECESSION - Nadeem_Walayat
2.Why APPLE Could CRASH the Stock Market! - Nadeem_Walayat
3.The Stocks Stealth BEAR Market - Nadeem_Walayat
4.Inflation, Commodities and Interest Rates : Paradigm Shifts in Macrotrends - Rambus_Chartology
5.Stock Market in the Eye of the Storm, Visualising AI Tech Stocks Buying Levels - Nadeem_Walayat
6.AI Tech Stocks Earnings BloodBath Buying Opportunity - Nadeem_Walayat
7.PPT HALTS STOCK MARKET CRASH ahead of Fed May Interest Rate Hike Meeting - Nadeem_Walayat
8.50 Small Cap Growth Stocks Analysis to CAPITALISE on the Stock Market Inflation -Nadeem_Walayat
10.Apple and Microsoft Nuts Are About to CRACK and Send Stock Market Sharply Lower - Nadeem_Walayat
Last 7 days
The NEXT BIG EMPIRE WILL BE..... CANZUK - 25th June 22
Who (or What) Is Really in Charge of Bitcoin's Price Swings? - 25th June 22
Crude Oil Price Forecast - Trend Breaks Downward – Rejecting The $120 Level - 25th June 22
Everyone and their Grandma is Expecting a Big Stocks Bear Market Rally - 23rd June 22
The Fed’s Hawkish Bite Left Its Mark on the S&P 500 Stocks - 23rd June 22
No Dodging the Stock Market Bullet - 23rd June 22
How To Set Up A Business To Better Manage In The Free Market - 23rd June 22
Why Are Precious Metals Considered A Good Investment? Find Out Here - 23rd June 22
UK House Prices and the Inflation Mega-trend - 22nd June 22
Sportsbook Betting Reviews: How to Choose a Sportsbook- 22nd June 22
Looking to buy Cannabis Stocks? - 22nd June 22
UK House Prices Momentum Forecast - 21st June 22
The Fed is Incompetent - Beware the Dancing Market Puppet - 21st June 22
US Economy Headed for a Hard Landing - 21st June 22
How to Invest in EU - New Opportunities Uncovered - 21st June 22
How To Protect Your Assets During Inflation - 21st June 22
AI Tech Stocks Current State, Is AMAZON a Dying Tech Giant? - 20th June 22
Gold/Gold miners fundamental checkup - 20th June 22
Personal Finance Tips: How To Get Out Of A Tough Financial Situation - 20th June 22
UK House Prices Relative to GDP Growth - 19th June 22
Will Global Markets Be Pushed Deeper Into Crisis Event By The US Fed? - 19th June 22
Useful Things You Need To Know About Tweezer Top Candlestick Pattern - 19th June 22
UK House Prices Real Terms Sustainable Trend - 17th June 22
Why I’m buying the “new” value stocks… - 17th June 22
Optimize Benefits from R&D in Software Product Development with an R&D Tax Credit Software - 17th June 22
Want To Save On Your Business Energy? Here Are Some Helpful Tips - 17th June 22

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

Bitcoin Price Reversal?

Currencies / Bitcoin Mar 14, 2015 - 04:19 PM GMT

By: Mike_McAra


In short: no speculative positions.

IBM might be working on the adoption of blockchain to serve traditional currencies, we read on the Reuters website:

International Business Machines Corp is considering adopting the underlying technology behind bitcoin, known as the "blockchain," to create a digital cash and payment system for major currencies, according to a person familiar with the matter.

The objective is to allow people to transfer cash or make payments instantaneously using this technology without a bank or clearing party involved, saving on transaction costs, the person said. The transactions would be in an open ledger of a specific country's currency such as the dollar or euro, said the source, who declined to be identified because of a lack of authorization to discuss the project in public.


"When somebody wants to transact in the system, instead of you trying to acquire a bitcoin, you simply say, here are some U.S. dollars," the source said. "It's sort of a bitcoin but without the bitcoin."

This is interesting since IBM would be the first large company we know of to start work on actually developing a new type of blockchain transactions. So far most of the works has been done by startups and more established companies usually steered clear of Bitcoin, except for payments integration. IBM seems to be looking to come up with a new kind of blockchain, the essential part of the Bitcoin ecosystem, to create a vehicle for easy money transfers. It will be very interesting to see whether the company will be able to come up with a solution which would make the payment value less volatile than it is now.

On the one hand, a system without wild currency fluctuations might be beneficial to those who are not that much interested in Bitcoin as a currency but rather as a payment system. On the other, most of the development in the cryptocurrency space seems to be revolving around Bitcoin. So, by coming up with a system of their own, IBM could actually miss out on a lot of the benefits that would come from a variety of extensions to the Bitcon system. One way or another, this shows that some of the big players in the tech market are interested in Bitcoin enough to work on the system on their own.

For now, we focus on the charts.

On BitStamp, we saw a first day of depreciation yesterday. The volume was similar to what we had seen on the day before and Bitcoin started moving out of the overbought zone. This looked like a possible reversal but yesterday we wrote:

Is today a tipping over point? It might be, but we wouldn't bet on it just now. Based on the recent developments and the lack of volume today, we would expect either several days of subdued volume before more declines or a temporary move higher. This is our best bet at the moment. It is possible that we will see a stronger move above $300, but we would bet on this at the moment. The situation is pretty tense.

And the situation remains tense today as Bitcoin has depreciated slightly so far (this is written around 12:30 p.m. ET) but the move hasn't been really strong. We might be seeing a breather after a prolonged rally. The size of the move doesn't support a very bearish outlook just now. We would like to wait for a slightly more pronounced move lower before betting on a further move down.

On the long-term BTC-e chart, we see that the recent action looks like a pause below $300. Yesterday, we wrote:

The situation has become slightly more bearish today but not enough to go short, in our opinion. Our assessment now is that we might see a period of trading around $300 before possible declines or a short-term move above $300 followed by a reversal and more declines. We don't rule out a continuation of the rally just now but the overbought levels combined with the $300 potential psychological level might indicate that the rally is coming to an end.

Today has certainly been an indication of a pause or even more declines. The main level to observe now is $300. If we see a strong move above it, the rally might continue. However, we wouldn't bet on this. It seems that the rally might be running out of steam. If we in fact see a failed move above $300 or more declines from where Bitcoin is trading now, we might consider hypothetical short positions.

Summing up, we don't support any speculative positions.

Trading position (short-term, our opinion): no positions.


Mike McAra
Bitcoin Trading Strategist
Bitcoin Trading Alerts at


All essays, research and information found above represent analyses and opinions of Mike McAra and Sunshine Profits' associates only. As such, it may prove wrong and be a subject to change without notice. Opinions and analyses were based on data available to authors of respective essays at the time of writing. Although the information provided above is based on careful research and sources that are believed to be accurate, Mike McAra and his associates do not guarantee the accuracy or thoroughness of the data or information reported. The opinions published above are neither an offer nor a recommendation to purchase or sell any securities. Mr. McAra is not a Registered Securities Advisor. By reading Mike McAra’s reports you fully agree that he will not be held responsible or liable for any decisions you make regarding any information provided in these reports. Investing, trading and speculation in any financial markets may involve high risk of loss. Mike McAra, Sunshine Profits' employees and affiliates as well as members of their families may have a short or long position in any securities, including those mentioned in any of the reports or essays, and may make additional purchases and/or sales of those securities without notice.

© 2005-2019 - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.

Post Comment

Only logged in users are allowed to post comments. Register/ Log in